Schabir Shaik's Nkobi Holdings settled debts of about R1,2
million for Deputy President Jacob Zuma because he did not have "access to
sufficient funds" for his lifestyle, the Durban High Court heard on
Thursday.

Director of KPMG auditing and accounting firm, Johannes van der
Walt, told the court that it appeared that Zuma's financial problems started in
1995.

Van der Walt is the State's fifth witness in the State's fraud
and corruption trial against Shaik, the head of Nkobi Holdings.

He said the relationship between Shaik and Zuma did not exist in
a vacuum, but had a historical context.

He said Nkobi Holdings' projects were not "particularly
profitable" and that like Zuma, the group financed its operations mainly
from bank overdrafts.

He said several of Nkobi's cheques and debit order payments were
returned and despite this, payments were still made to and from Zuma. No effort
was made to recover the funds.

Financial institutions communicated directly with Shaik about
Zuma's financial position because Shaik acted as his financial adviser.

As Zuma's financial position deteriorated, legal proceedings
were instituted against him.

"He could not settle debts with means at his
disposal," Van der Walt said.

The court also heard that there was no proof that Zuma was
financially assisted by Shaik before the establishment of Shaik's company Nkobi
Holdings.

Nkobi Holdings has shares in companies which successfully bid
for a slice of South Africa's multi-billion rand arms deal.